The reports were in reference to a consumer who found bugs in the oregano sachets at an outlet in Gurugram.

The stock fell to as much as Rs 1,306.80 before closing at Rs 1,321.80 with a loss of Rs 103.40.

Highlights

The stock of Jubilant FoodWorks, which owns Domino's, tanked 7% on BSE

A consumer found bugs in the oregano sachets at an outlet in Gurugram

Domino's operator has a network of 1,125 Pizza restaurants

The stock of Jubilant FoodWorks, which owns eatery chains Domino's and Dunkin' Donuts, tanked 7 per cent on the Bombay Stock Exchange (BSE) on Wednesday, owing to media reports that insects were found in its oregano sachets. The company, in a clarification issued to the BSE, reassured its customers that it had carried out inspections across its vendors.

The reports were in reference to a consumer who found bugs in the oregano sachets at an outlet in Gurugram. Switching fast to the damage control mode, Jubilant FoodWorks said in a notification to BSE, "The company has since carried out a comprehensive inspection across vendors and stores and would like to reassure that all our food ingredients are safe for consumption and we have not received any other complaint of this nature."

Despite the clarification from the company, investors were not enthused. The stock fell to as much as Rs 1,306.80 before closing at Rs 1,321.80 with a loss of Rs 103.40 or 7.26 per cent.

Jubilant FoodWorks also said that it maintains stringent hygiene and quality standards for its products. "All the vendors and manufacturing units are FSMS (food safety management systems) certified. We also have Hazard and Critical Control Points (HACCP) certified (globally accepted standards for quality certification) commissaries where we follow good quality standards and have a regular audit process of all ingredients used," it added.

Domino's operator has a network of 1,125 Pizza restaurants across 264 Indian cities. It also has 55 Dunkin' Donuts restaurants across 15 cities in the country.